New Zealand have the unique ACC scheme in the world

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New Zealand is the only country providing a ‘no fault’ scheme, for all people in New Zealand, whether they are New Zealand residents, people with work visas, student visas, short-term international visitors or business people, as long as you are in New Zealand, you are provided with 24/7, comprehensive, and accidental injury insurance.

This no-fault scheme is provided by the Accident Compensation Corporation of New Zealand, referred to as ACC. ACC is an insurance agency operated by the New Zealand government and is responsible for personal injury caused by Accident.

In New Zealand, everyone, whether residents or foreign tourists, contribute towards ACC with operating funds in a variety of ways. Such as shopping, wages, and GST etc. If you work in New Zealand, the ACC levy is included in the income tax paid by the employers. The level of ACC levy varies depending on the type of work. For example, the riskiest occupation, lumberjacks could have an ACC levy of more than 4%, while administrators are considered one of the lowest-risk groups, with an ACC levy of only a few percent.

ACC breakdown into five accounts;

  • Work Account
  • Earner’s Account
  • Motor Vehicle Account
  • Non-earner’s Account
  • Treatment Injury Account

The establishment of ACC

Under normal circumstances, in the event of an accident, the prosecution of a lawsuit between the parties for negligence is time consuming and costly, which will not only affect the recovery of the injured, but also consume personal and social resources. Even if the lawsuit is won, the indemnifies may not have the money to pay compensation. Therefore, in line with the principle of efficiency, the New Zealand government introduced ACC compensation system.

Although New Zealand's benefits are outstanding, ACC can only guarantee the cost of accident treatment and provide a certain amount of financial support. For some basic diseases or non-accidental injuries, ACC will not be compensated. Therefore, it is a good thing to have ACC protection, but ACC does not provide us with 100% protection.


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